Buying or selling a home is one of the largest investments, so understanding the real estate market trends is essential for success. Whether you’re a first-time buyer or a long-term investor, it pays to stay informed about what’s happening in the real estate market. Here’s an overview of some of the most important trends to watch.
Mortgage Rates are Low
Low mortgage rates are one of the biggest factors driving the real estate market right now. Mortgage rates were at record lows in 2020 and remain low today despite rising slightly over the last few months. Low mortgage rates directly impact the housing market, as buyers have more money to spend when rates are low. This results in increased demand and higher prices for homes. If you’re looking to buy a home or refinance your existing loan, chances are that you’ll be able to lock in a fantastic rate that will help you save money over time.
Housing Inventory is Tight
The other major trend we’re seeing in today’s real estate market is tight housing inventory. This means that there are fewer homes for sale than buyers are looking for them, which has driven prices up dramatically over the last few months. In fact, according to Zillow, home values have increased by 10% over the past year! While this may be great news if you own a home already, it does mean that it might take longer to find your dream home or get top dollar for your listing if you decide to sell.
Demographics are Changing
Millennials are now entering their peak buying years and making up more and more of today’s buyers. They tend to place less emphasis on traditional measures of “homeownership success,” like owning a single-family detached house with a white picket fence. They prefer more affordable options like condos and townhomes instead.
This demographic shift has led developers to focus their efforts on building more multi-family housing units rather than single-family homes to meet demand. It has also led many buyers away from suburban areas towards urban centers as they look for walkability and convenience without sacrificing the quality of living.
Real estate markets can change quickly, so it pays to stay informed about what’s happening in yours! Keeping an eye on mortgage rates, housing inventory levels, and demographic shifts can help ensure that you make smart decisions when buying or selling a home. Understanding these key trends will also give you an edge when negotiating with potential buyers or sellers so that you can get the best deal possible.